Average demand is 300MW, while production is at about 145-150MW at present, according to ESCOM letter with the latest load shedding schedule. This is roughly a third less than current grid capacity, which covers only 10% of the population, although that figure probably could do with updating and reducing.

Agreements have now been signed with China Gezhouba Group for Kam’mwamba Coal-Fired Power Plant Project that is expected to produce 300MW. The government has also said that it will sign a 30-year agreement with Brazilian mining house Vale for the supply of coal from its Mozambican project, adding that this will not prevent procurement of coal that is locally produced. Another Brazilian company, Costa Negócios, has expressed interest in Malawi’s agriculture and mining sectors. However, given the absence of serious investment and maintenance for several decades in energy, it will be a long time before the electricity situation is resolved, and according to Cement Products Limited Chair Aslam Gaffar, ‘our only biggest challenge is electricity supply‘.

We are delighted to have raised funds to complete all technical disciplines required to proceed to a final investment decision at Malingunde. The significant institutional support received from Australia and the United States highlights the demand for
simple, low-cost projects in the rapidly expanding graphite space.

Paladin collapsed into administration in July, as reported by The Australian at the time, after its French offtake partners EdF wanted the company to come up with $US277m for the reimbursement of uranium offtake pre-payments.

As a secured lender, EdF would appear to be at the front of the creditors’ queue should Paladin go under.

Shares in Paladin have been suspended since early last month, when they were changing hands at just 4.7c each.

At the end of September, Oxfam Malawi held a public debate on how Malawi’s extractives can contribute to development and SacOil held a training for government officials on hydrocarbons. Malawi’s Petroleum Policy is currently being drafted and should be released in November, according to Nyasa Times. This would be very swift compared to the Mines and Minerals Bill, which we have been told will be tabled at the ‘next sitting of parliament’ since April 2015. Civil society continues to call for its swift enactment.

Nkhotakota District Executive Committee recently requested Hamra Oil to put on hold geophysical mapping until an Environmental Social Impact Assessment (ESIA) was presented to the committee. It is wise to be cautious. Nevertheless, this ESIA was in fact already conducted and presented to the public in 2014 by Surestream Petroleum when it held the majority share in the same petroleum blocks. This ESIA is still valid for activities Hamra is currently conducting. That said, some people in Nkhotakota are now happy with the project following meetings with the company. Kanyenda Area Development Committee, Senior Group Village Headman Kalewa who represented Senior Chief Kanyenda said:

We had fears that the exploration exercise would destroy environment like fish and trees but now that we hear there will be no environmental destruction, we are happy for the project.

We only ask Hamra Oil representatives to keep us updated and keep their promise of promoting social responsibility by providing a certain percentage of the money that will be generated to us through the council if at all oil and gas are found during the exercise.

If we find oil and gas in the lake, it will be to our advantage because whatever happens, Malawi will still be using the fuel driven vehicles until some more years to come.

Editor of Nyasa Times also came out in strong support of oil. He’s probably getting ahead of himself given that exploration remains in the very early stages, and we haven’t cleaned up our public financial system enough which is necessary if we are to benefit as a nation from resource revenues.

In personal news, I have taken on a new role with the Tax Justice Network as Anglophone African Hub Researcher and continue, among other activities, with the School of Data as an Open Contracting Mentor for Hivos and ARTICLE 19’s Open Up Contracting programme.